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À Definition:

͞A ‘ n
e‘ent infor‘ tion syste‘ () is a system or process that

provides information needed to manage organizations effectively.͟

Management information systems are regarded to be a subset of the

overall internal controls procedures in a business, which cover the application of
people, documents, technologies, and procedures used by management
accountants to solve business problems.

À Œoles nd i‘ t of :

MIS is as important as finance, marketing management,

human resource management, or any other business function. Information
system and technologies have become a vital component of successful business
and organizations. They thus constitute an essential field of study in business
administration and management. Since you probably intend to be a manager,
entrepreneur, or business professional, it is just as important to have a basic
understanding of information system as it is to understand any other functional
area in business.

À èo‘onents of infor‘ tion syste‘:

An information system depends on the resources of people, hardware,

software, data, and networks to perform input, processing, output, storage and
control activities that convert data resources into information products.
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This information model highlights the relationships among the


components and activities of information systems:

 |eople, hardware, software, data and networks are five basic resources of
information systems.
 ata resource transformed by information processing activity in to a variety
of information products for end users.
 Information processing consists of input, processing, output, storage and
control activities.

ÀŒesoures of infor‘ tion syste‘s:

It consists five major resources, which are as below.

|eole resoures: End users are people who use an information system or the
information it produces. They can accountants, salespersons, engineer, clerks,
customers, or managers most of us are information system and users.

 sei lists are people who develop and operate information

systems. They include systems analysts, programmers, computer operators, and
other managerial, and technical and clerical IS personnel.

H rdw re Œesoures: èo‘uter syste‘s, which consists of central processing

unit containing microprocessor and variety of inter connected peripheral devices.
Examples are microcomputer system and large mainframe computer systems.

èo‘uter erier ls, which are devices such as keyboard

or electronic mouse for input of data and commands, a video screen or printer for
output of information, and magnetic or optical disks for storage of data resources.

oftw re resoures: The concept of Software resources includes all sets of

information processing instructions. This generic concept of software includes not
only the sets of operating instructions called |ro
r ‘s, which direct and control
computer hardware, but also the sets of information processing instructions
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needed by people, called roedures. |roedures, which are operating


instruction for the people who will use an information system. Examples are
instructions for filling out a paper form or using a software package.

D t resoures: data is more than the raw material of information systems. You
should view data as data resources that must be managed effectively to benefit
all and users in the organization.

Network resoures: Telecommunications networks like the internet, intranet and

extranets have become essential to the successful operation of all type of
organizations and their computer based information systems.

èo‘‘uni tions ‘edi . Examples include twisted-pair wire, coaxial cable, fiber-
optic cable, microwave systems and communication satellite systems.

Network uort, this generic category includes all of the people, hardware,
software and data resources that directly support the operation and use of a
communications network.

nfor‘ tion roduts: management reports and business document using tax and
graphics displays, audio responses, and paper forms.

À  n
e‘ent Effetiveness:

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{ |l nnin
: eciding what needs to happen in the future (today, next week,
next month, next year, over the next 5 years, etc.) and generating plans for
action.
{ *r
nizin
: (Implementation) making optimum use of the resources
required to enable the successful carrying out of plans.
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{ t ffin
: Job analyzing, recruitment, and hiring individuals for appropriate

jobs. 
{ †e din
Diretin
: etermining what needs to be done in a situation and
getting people to do it.
{ èontrollin
onitorin
: Checking progress against plans.
{ otiv tion: Motivation is also a kind of basic function of management,
because without motivation, employees cannot work effectively. If
motivation doesn't take place in an organization, then employees may not
contribute to the other functions (which are usually set by top level
management).